Ontario’s Workplace Safety and Insurance Act creates what is often called a “chain of liability” in the construction industry. Under Section 90 of the Act, if a subcontractor fails to pay its WSIB premiums or is not registered, the WSIB can collect the amount owed from the principal contractor, and if necessary, from the owner of the project. This cascading liability ensures that injured workers always have access to benefits, regardless of the financial health of their direct employer. The clearance certificate is the only mechanism by which a principal can break this chain. By verifying a subcontractor’s clearance status before work begins, and periodically thereafter, principals protect themselves from inheriting another firm’s debts. Failure to do so is not just a contractual oversight; it is a direct violation of the Act, potentially resulting in fines, legal judgments, and damage to business reputation.
: For most construction projects, both the principal and contractor are legally required to ensure a valid clearance is in effect before work starts; failure to do so is an offence [5.6, 5.20]. Requirements for "Good Standing" To be eligible for a clearance, a business must meet these criteria: Active Account wsib clearance certificates
The primary purpose of a clearance certificate is to from financial liability. Clearances | WSIB Ontario’s Workplace Safety and Insurance Act creates what
Here is a breakdown of the correct formatting and usage: The clearance certificate is the only mechanism by